New Delhi: India’s household gold holdings have surpassed the combined reserves of the world’s top 10 central banks and emerged as a significant but underutilised economic asset, a report has said.
As per the industry body Assocham analysis, the sharp rise in gold prices during 2024-25 and early 2026 has pushed the value of gold held by Indian households to an estimated USD 5 trillion, making it one of the largest pools of private wealth globally.
Highlighting the macroeconomic potential of this stockpile, the report noted that channelising even 2 per cent of household gold into financial assets annually could significantly boost economic growth.
If such a trend continues, nearly 40 per cent of total gold holdings could move into financial instruments by 2047, adding an estimated USD 7.5 trillion to India’s GDP through multiplier effects, it said.
With India’s GDP projected at around USD 34 trillion by 2047, this additional contribution could take the economy beyond USD 40 trillion.
The report also underlined that much of this gold remains outside the formal financial system and called for measures to channelise it into productive uses such as gold monetisation schemes, collateralised lending, and gold-linked financial instruments.
Such a shift could support key sectors including manufacturing, infrastructure and agriculture, while also deepening financial inclusion.
The report also pointed out that the growing role of gold loans and said lending against gold and jewellery reached Rs 24.34 lakh crore (around USD 26 billion) in 2025-26 (up to November 2025), indicating rising financialisation of the asset.
Moreover, the report also highlighted that India officially holds about 880 tonnes of gold reserves, ranking eighth globally, according to the World Gold Council. However, Assocham said that privately held gold in households far exceeds official reserves and is higher than that of any country.
India continues to be the world’s largest consumer of gold jewellery, with investment demand for bars and coins also rising sharply in recent years. The appreciation in gold prices has strengthened household balance sheets, boosting consumption and supporting economic activity.
Given its scale and economic impact, Assocham said the need to enhance the productivity of gold holdings to unlock their full potential for long-term growth.
